OHM, a better currency for the digital age.
A Short History
The goal from the start has been to create a decentralized, free floating yet stable unit of account, designed to maintain the purchasing power of its users. To achieve this, OHM should be backed by a diverse and productive reserve of assets. Through designing such a currency, and achieving its vision, OHM would become the de facto reserve currency of DeFi.
To keep things simple, and allow for the system design to prove itself, Olympus started off with DAI. Once proven and with the full faith of its community behind it, Olympus moved forward. The next stop on its journey was the partnership with FRAX and the addition of new bonds, which have been a large success for both protocols. Olympus demonstrated the power of these bonds by taking in $7.2m of “naked” FRAX and building the OHM-FRAX pool to $15.4m in just over a month.
“There’s a strange irony to the fact that the most utilized cryptocurrency is really just a digitized dollar. While functional stablecoins may achieve a stable USD value, that does not mean they’re stable in purchasing power. Their real value changes just like dollars in a bank account…” - Zeus
The Next Chapter — ETH
Now, in line with its vision, Olympus will continue to decentralize its backing and begin maintaining OHM’s purchasing power. Olympus and the majority of DeFi are deeply intertwined with and secured by Ethereum. Thus, the decision with which volatile asset to start this process seemed simple.
Ether secures arguably the largest and most productive economy on the blockchain. With the launch of EIP-1559 and the eventual move to Proof of Stake, Ether will accrue value, as well as dividends to those applications that live on and help secure its network. Owning ETH also opens up more partnership opportunities. This, along with integrations and broader adoption, will drive new Olympus growth.
Adding ETH (wETH) to the Treasury is a natural next step for the protocol and allows Olympus to diversify and decentralize its backing, while at the same time claiming a stake on the chain in which it lives.
ETH itself is not ERC-20 compatible. In order to make use of all smart contract functions, protocols use an ERC-20 form of ETH, called wETH. It is the same token Sushiswap and Uniswap use for trading on their exchanges. Further, our Treasury cannot take in a non-ERC-20 token, so wETH is the obvious choice.
OIP-15(59) has passed with 99% voting for ETH bonds! Ether opens to Olympus a new world of possibilities for adding value both to Olympus and to Ethereum itself. Have an idea for how Olympus can best use Ether? Join the Discord, join the conversation, become an Ohmie.
Check out the original proposal and historic vote!
Thanks to our Ohmniscience, as well as the community confidence shown in the vote, ETH bond contracts go live today, exactly 6 years after the launch of Ethereum itself. 3+3 = 6 👀
The first ETH bond will be purchasable on Wednesday, August 4 @ 11 AM EST — 3 PM UTC.